Indian Markets: Nifty, Sensex, IT Stocks and Q1 Earnings in Focus
The Indian equity markets closed lower on Thursday, with IT stocks leading the decline. The BSE Sensex fell by 345.80 points, and the NSE Nifty lost 120.85 points, hitting 25,355.25 amidst selling pressure at advanced levels.
Sectoral performance revealed Nifty Realty and Nifty Metal indices as standout performers due to selected buying, whereas Nifty FMCG and Nifty PSU Bank recorded declines due to profit-taking. Both Nifty Midcap 100 and Nifty Smallcap 100 also concluded in negative territory, mirroring the prevalent market caution.
IndusInd Bank and Maruti Suzuki offered some stability within the Nifty 50, offsetting broader sluggish trends slightly, while Bharti Airtel and Asian Paints were significant contributors to the market dip.
Anticipation surrounding Tata Consultancy Services’ quarterly results and the potential US trade deal contributed to market volatility. Market experts underscore continued volatility due to trade agreements and the financial results season’s start.
Vinod Nair from Geojit Investments highlighted investor caution, especially concerning IT and finance sectors’ performance. The day saw narrow trading ranges as investors awaited clarity on international trade and tariffs, according to VLA Ambala from Stock Market Today.
Technically, a bearish candle formation on the daily chart suggests a failed breakout attempt, positioning the market near lower levels, as noted by Nagaraj Shetti from HDFC Securities. The ongoing consolidation sees Nifty maintaining its position above key moving averages, though Sudeep Shah from SBI Securities noted declining momentum.
Shrikant Chouhan of Kotak Securities pointed out persistent selling pressure after a muted market opening, suggesting potential further declines if key support levels are breached, potentially driving Nifty down to 25,200-82,700.
Key Market Highlights:
- Nifty 50 fell by 120.85 points, closing at 25,355.25.
- Sensex dropped by 345.80 points, ending at 83,190.28.
- Nifty Realty and Nifty Metal indices outperformed, while Nifty FMCG and Nifty PSU Bank lagged.
- IT stocks led the decline, with Bharti Airtel and Asian Paints contributing to the market dip.
- IndusInd Bank and Maruti Suzuki offered stability within the Nifty 50.
What to Expect:
Market experts predict continued volatility due to trade agreements and the financial results season’s start. Investors are advised to remain cautious, especially in the IT and finance sectors. The ongoing consolidation may lead to further declines if key support levels are breached.
Conclusion:
The Indian equity markets closed lower on Thursday, with IT stocks leading the decline. The sectoral performance revealed Nifty Realty and Nifty Metal indices as standout performers, while Nifty FMCG and Nifty PSU Bank recorded declines. Market experts predict continued volatility due to trade agreements and the financial results season’s start. Investors are advised to remain cautious, especially in the IT and finance sectors.
